How long do loans stay on report?

abc.xyz

Hi. I'm planning to apply for a mortgage in the next few years. I understand that accounts stay on your report for 6 (?) years. Is this 6 years since the account was opened, or 6 years from the last payment/account closure? I'd like the loans to be visible when I apply for the mortgage, so they can evidence good payment history.

fatbelly

6 years after the account is defaulted or settled, whichever is sooner

CliveOfIndia

Loans, whilst they do indeed contribute to your credit history, tend to be transient by their very nature.  If your mortgage application is some time away and you want to build/maintain a good credit history, you may want to consider a credit card.

Used correctly, it can be a simple and totally free way to build up a solid history.  Use it for budgeted, planned expenditure, things you'd have to buy anyway (food, petrol, that kind of thing).  Wait for the statement to arrive each month and pay in full before the "payment due" date - ideally set up a direct debit for the full statement balance.

Undoubtedly some people can come unstuck with credit cards - primarily because they use them to buy things they can't really afford, find they're unable to pay in full every month, and fall into a cycle of high interest charges and never-ending debt.  But if you're disciplined enough to use them correctly, they can be a very useful financial tool, and can assist in building a long-standing and positive credit history.

You may not wish to take out a credit card, and there's no reason at all that you "have" to have one.  But it's just something to consider.